The state just raised the basic school levy to fill in the lost revenue caused by the decline in property taxes statewide. This means an additional $2 million will be headed out of Park City to fund school districts across Utah.
The basic school levy is the same for all school districts in the state. It is used to help fund the basic school program. The basic school program is equalized: the same type of student in one district gets the same amount of money in another. When the basic school levy does not generate enough money to pay for the basic school program the state steps in and makes up the difference with income tax revenue.
Park City School District is the only district that collects enough money from the basic school levy to cover the cost of its basic school program. In fact, the tax generates more than enough to cover the cost of the program. In order to maintain equality across the state, Park City School District is required to give its extra basic school levy money to the state. This means that this year, $2 million from Park City property owners will be used to help pay for the education of children in other parts of the state.
Because of the increase, a home with a market value of $500,000 will cost an average of $34 more per year. A home that is not a person’s primary residence or a business worth the same amount can expect to be taxed $61.50 more each year.